ITW(US:ITW) Globenewswire·2025-10-24 12:00Core Insights - Illinois Tool Works Inc. (ITW) reported solid operational and financial performance for Q3 2025, with an EPS of $2.81, a 6% year-over-year increase excluding divestiture gains, and a record operating margin of 27.4% [2][4][8] - The company achieved a revenue of $4.1 billion, reflecting a 2% increase, driven by a 1% organic revenue growth and a 2% positive impact from foreign currency translation [3][8] - ITW is narrowing its full-year 2025 GAAP EPS guidance to a range of $10.40 to $10.50, projecting overall revenue growth of 1% to 3% [5][8] Financial Performance - Q3 2025 revenue reached $4.1 billion, up 2% from the previous year, with organic growth contributing 1% [3][8] - Operating income increased to $1.1 billion, a 6% rise, with an operating margin improvement of 90 basis points to 27.4% [4][8] - Free cash flow rose by 15% to $904 million, with a conversion rate of 110% to net income [4][8] Strategic Initiatives - The company emphasized its focus on Customer-Back Innovation, which is driving consistent above-market organic growth [3][5] - ITW plans to repurchase approximately $1.5 billion of its own shares and has raised its dividend by 7%, marking the 62nd consecutive year of dividend increases [4][5] Segment Performance - The Automotive OEM segment generated $830 million in revenue with an operating margin of 21.8% [17] - The Food Equipment segment reported $694 million in revenue and a 29.2% operating margin [17] - The Welding segment achieved a revenue of $477 million with a robust operating margin of 32.6% [17] Guidance and Outlook - The company anticipates overall revenue growth of 1% to 3% for 2025, with organic growth expected to be flat to 2% [5][8] - Operating margin is projected to be between 26% and 27%, with a contribution of 125 basis points or more from enterprise initiatives [5][8]